Vivendi investors despatched shares surging by far more than a fifth just after the media huge verified options to listing Common Music as a €30bn (£26bn) firm by the stop of the year.
The French team, controlled by the billionaire Bollore family members, is poised to funds in on a growing investor appetite for tunes investments by offloading 60pc of Common with an Amsterdam listing.
Affirmation of the program, which is probable to win shareholder acceptance at a March 29 conference, despatched Vivendi shares up 20pc to €31.forty one in Paris, valuing the firm at €37bn.
The firm options to retain a 20pc holding in Common pursuing the float just after promoting two 10pc stakes to Tencent, the Chinese tech and entertainment conglomerate.
In a memo to staff members on Saturday, Vivendi chief govt Arnaud de Puyfontaine and chairman Yannick Bollore stated the decision to open Common Music’s share money to Tencent experienced “verified its attractiveness with strategic investors”.
“UMG would be in a situation to just take edge of drastically amplified monetary flexibility to go after its dynamic advancement and its groundbreaking part in the tunes and entertainment industry, to the reward of artists and admirers just about everywhere,” they extra.
Vivendi owns 80pc of Common together with investments in French broadcaster Canal+, movie and Tv set output firm Studiocanal, marketing agency Havas, ebook publisher Editis and Gamesloft, the cell online games maker.